September 2017 - Garton & Harris

Taking action against power of attorney abuse in B.C.

September 26, 2017/in Power of Attorney/by gartonandharris

Someone who is chosen to oversee a person’s affairs should they need help or when they can’t do it themselves is usually chosen because that person is trusted. In British Columbia, there have been instances, however, when someone who has been named power of attorney has abused that trust and has done things that could be considered fraudulent. There are things that can be done if abuse is suspected.

Abusing the position of power of attorney is tantamount to bullying. Problems sometimes happen because there are very few areas without the position concerning accountability and transparency. When issues arise, they tend to create rifts in families, not only from a legal aspect, but in personal ways. In fact, it is because of the personal nature of the fraudulent behaviour, very few cases of power of attorney abuse are reported to the authorities.

If family members do suspect someone who holds a power of attorney is abusing the office, there are some things to consider doing. Getting legal advice would be paramount. Another wise idea may be to have two rather than one power of attorney. That would provide some checks and balances. Another thing to consider is that perhaps children don’t always make the best power of attorney, unless they’re somewhat financially savvy and trustworthy.

A British Columbia lawyer who has experience with wills and estates law will be able to guide his or her clients on the legalities of a power of attorney. It is important to plan for the future and a lawyer can help ensure things are handled as they should be. A lawyer will make sure all documents regarding a power of attorney are in accordance with the law.

Source: cbc.ca, “Power-of-attorney abuse more common than we think, expert says“, Accessed on Sept. 25, 2017

Estate administration in B.C.: Handling parents’ debts

September 18, 2017/in Estate Administration & Probate/by gartonandharris

Statistics Canada says one in three retired citizens 55 years of age or older and two in three citizens 55 years of age or older who are still working are in debt. In terms of estate administration in British Columbia, this is something adult children of the 55-plus crowd need to think about. Are they legally responsible for their parents’ debts?

No provinces in Canada will pin the debt load of parents onto their adult children; however, parents can seek an order for their children to offer them support in cases where they are destitute. Even if adult children are not obligated to help their parents financially, they may want to offer advice for estate planning purposes. The discussion could include issues like general finances and any potential problems emphasizing concern for their retirement years.

There are things adult children can do before their parents’ situations becomes too dire — like offering to foot the bill for a financial planner. They could also talk to their parents about becoming their financial guardian — a good way to protect the elderly from scams. When adult children work with their parents before serious financial issues befall them, there will be much less worry for everyone concerned come their parents’ retirement time.

There are many questions regarding estate administration and estate planning that a British Columbia lawyer experienced in wills and estates law could answer. A lawyer will provide guidance on all aspects of estate planning and estate administration. A seasoned lawyer will draw up any documents needed regarding the planning of an estate making sure all legalities are covered.

Source: canadianliving.com, “What to do about your parents’ debt“, Renee Sylvestre-Williams, Accessed on Sept. 16, 2017

Estate administration and the Titanic clause

September 11, 2017/in Estate Administration & Probate/by gartonandharris

It’s horrible to think about, but what if disaster should strike and an entire family perishes at the same time? British Columbia residents in the process of fashioning their estate plans might do well to consider adding a “Titanic” clause to their wills to make estate administration easier should the unthinkable befall an entire family. The clause gets its name from Ida Straus’s refusal to leave her husband on board the ill-fated Titanic steamship. The elderly pair died together.

The clause is also known as a simultaneous death clause or common disaster clause. In British Columbia, as in Ontario, when both spouses die at the same time, neither is said to have survived the other and assets will go directly to heirs. However, with today’s blended families and family members living out of province or country, having wills that reflect the wishes of what people want is truly important. Estate administration should not be about guessing.

A British Columbia lawyer who has experience in wills and estates law will be able to include a Titanic clause when drawing up wills. It is better to be safe than sorry. Without such a clause, things may get complicated should disaster indeed strike.

Estate administration can go smoothly if everything is planned out beforehand. A lawyer will be able to guide British Columbia residents when it comes to including certain clauses in their wills and provide information in regard to what those clauses mean. He or she will also be able to answer any estate planning questions and guide residents in the estate planning process.

Source: theglobeandmail.ca, “Lack of a ‘Titanic clause’ could swamp estate planning“, Augusta Dwyer, Accessed on Sept. 11, 2017

Power of attorney in British Columbia can be a confusing role

September 4, 2017/in Power of Attorney/by gartonandharris

At times, adult children are asked by their parents to undertake things for which they’re unprepared. No one likes to think about the death of his or her parents. But being named power of attorney in British Columbia is a role for which many children are unprepared and one which merits much forethought.

The Baby Boomer generation continues to age, and with that, their children are often called upon to look after things like finances. This is likely when the power of attorney talks happen. Acting as power of attorney isn’t always a cut and dry job, and should something go wrong, there can be dire consequences, and litigation could ensue.

Many things can come into play in a power of attorney situation. If dealing with blended families, the division of a parent’s estate may involve children and step children. That means the child(ren) named power of attorney will have to work even more diligently to avoid any conflicts of interest.

Abusing the duties of power of attorney is a serious problem and allegation. But after a parent or grandparent has died, the power of attorney is often accused of acting inappropriately by some family members. They may be less than happy with what they have been left.

A power of attorney is often asked to make decisions on behalf of an elderly or incapacitated relative, and those decisions can have a bearing on his or her inheritance and the inheritance of others. For instance, if grandpa’s will states one granddaughter is to get his house while her sister gets cash, the will could come into question, and one benefactor could come out with more than another. That could cause strife even though grandpa’s wishes were carried out as stated in his will.

People who have been asked to become a power of attorney are well advised to discuss the role with a British Columbia lawyer experienced in wills and estates law. It is better to have questions regarding the legalities of the position answered prior to agreeing to take on the task. Being prepared for the role is better than taking it on without any information.

Source: business.financialpost.com, “Power of attorney can get messy“, Accessed on Sept. 1, 2017

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